Labubu dolls have been spotted dangling from Louis Vuitton and Saint Laurent purses as fashion’s quirky new status symbol, but their popularity could soon spell doom for the economy, an expert warns.
During economic downturns, consumers gravitate toward what experts call “affordable luxuries” — small, dopamine-spiking splurges that don’t break the bank — like lipstick, ice cream or movie tickets, studies have shown.
It’s sometimes called the “lipstick index” — and the creepy but cute mischievous dolls could be its latest iteration.
“When we’re seeing this kind of a craze in an uncertain economic climate — where consumer confidence is at best uneven and filled with anxiety — it’s hard not to look at this and try to think, ‘well, are people being rational?’” said David Lang, Sacramento State Economics Department chair.
As tempting as it is to say “hell no” — some economists beg to differ.
“Most behavioral economists’ answer to that would be — they’re acting completely rationally,” Lang added.
So pausing on the extra vacation or next designer bag buy, consumers instead might go for the “accessory for the designer purse, which might be the Labubu.”
“And they feel like that’s an acceptable, reasonable thing to do when they see the likes of Rihanna walking around with one attached to her purse,” Lang added.
As the viral little monsters flood the streets of the Big Apple and other cosmopolitan cities, economists believe the out-of-control spending spree — with the creatures typically selling for $20 to $40 — for the trendy dolls could actually be a sign that a recession is around the corner.
The toothy creatures — first designed a decade ago by Hong Kong artist Kasing Lung and inspired by Nordic mythology — have blown up in the past year, with people lining up before dawn on their release days and even sparking the occasional brawl.
Their popularity skyrocketed overnight, after K-pop star Lisa was seen with a Labubu hanging from her purse.
“Labubus are not really just a toy, but more of a tiny, tangible flex that people get to walk around with,” the economist said.
As for the next recession, Lang said one is on the way — it’s just a matter of when.
Close to two million Americans are currently collecting unemployment, the most since the COVID-19 pandemic threw the economy into its last recession, new Labor Department data released Thursday revealed.
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